China-IMF Collaboration: Toward the Leadership in Global Monetary Governance

Abstract

This paper analyses China’s collaboration with the IMF in various programmes, including China’s participation in IMF technical assistance programmes, IMF country surveillance for China, China’s attempt to weaken the US dominance in the international monetary system through the IMF, and the RMB’s entry to the SDR basket. The results of these collaboration activities reflect the extent to which the IMF assists China in pursuing leadership in global governance of monetary policies. The paper raises two key points. First, it highlights the impact of Chinese actors’ interests and objectives regarding China’s domestic economic development and outward expansion on their government’s interaction with international organizations. Second, it argues that the result of China-IMF collaboration is determined by two conditions (a) the compatibility between Chinese and IMF interests and objectives regarding key economic and political issues, and (b) China’s relative role in the IMF’s institutional governance in comparison with the Fund’s other member states.